What is a Single Payment Loan?

A single payment loan is a type of loan that is commonly offered in the banking industry today. Here are the basics of the single payment loan and how it works.

Single Payment Loan

With a single payment loan, as the name suggests, you are only going to be making one payment in order to retire the balance that you have borrowed. You are going to borrow a certain amount of money and the lender will tell you exactly how much you have to pay back to them at the maturity date of the loan. At that point, you are going to give them a single payment that is going to pay for all of the principal and the interest that has accumulated on the loan over the term.

Convenience

This type of loan is very convenient because you do not have to worry about making monthly payments like you do with a traditional loan. This gives you a lot of flexibility in your monthly budget and allows you to still have access to the money that you need.

Dangers

When you get this type of loan, it could potentially cause some problems for you financially. Many people forget about these loans and do not make the proper preparations to pay them off when they are due. 

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